The dollar weakened on Thursday, falling sharply versus the euro amid increased risk appetite and hawkish signals from European Central Bank.
Following yesterday's better-than-expected euro zone GDP report, ECB President Mario Draghi hinted that policy makers have no plans for further monetary stimulus.
New orders for U.S. manufactured goods fell by more than expected in the month of January, according to a report released by the Commerce Department on Thursday. The report said factory orders dropped by 0.7 percent in January after tumbling by a revised 2.0 percent in December. Economists had expected orders to decrease by 0.5 percent.
European Central Bank President Mario Draghi said on Thursday that the moderate recovery in the euro area is proceeding at a gradual pace, in sync with the bank's assessment, and inflation is expected to remain low for a prolonged period. "Incoming information confirms that the moderate recovery of the euro area economy is proceeding in line with our previous assessment," Draghi said in Frankfurt.
With output rising by much less than previously estimated, the Labor Department released a report on Thursday showing a notable downward revision to the pace of labor productivity growth in the fourth quarter of 2013.
In an upbeat sign for the labor market ahead of tomorrow's monthly jobs report, the Labor Department released a report on Thursday showing that first-time claims for U.S. unemployment benefits fell by more than expected in the week ended March 1st. The report said initial jobless claims dropped to 323,000, a decrease of 26,000 from the previous week's revised figure of 349,000.
The European Central Bank left its interest rates unchanged on Thursday after recent indicators signaled stabilizing economic conditions in the single currency bloc. Following the policy meeting in Frankfurt, the Governing Council decided to leave the main refinancing rate unchanged at a record low 0.25 percent. The decision was in line with economists' expectations.
The Bank of England policymakers kept the record-low interest rate unchanged, sticking to the forward guidance, and decided to refrain from any action that risks recovery. The nine-member rate-setting committee headed by Governor Mark Carney retained the interest rate at a historic low 0.50 percent and the quantitative easing programme unchanged at GBP 375 billion.
The European Central Bank is likely to maintain status quo on Thursday after recent indicators signaled stabilizing economic conditions. Following the policy meeting in Frankfurt on Thursday, the Governing Council is expected to hold the main refinancing rate at a record low 0.25 percent for a fourth month in a row. The announcement is due at 7.45 am ET.
The Bank of England's monetary policy meeting is likely to be a 'non-event', with policymakers expected to pledge a low interest rate regime and refrain from any action that risks recovery. The nine-member rate-setting committee is expected to retain the interest rate at a historic low 0.50 percent and its quantitative easing programme unchanged at GBP 375 billion.
The European Central Bank as well as the Bank of England are set to announce the outcome of their monetary policy meeting on Thursday.
Australia posted a merchandise trade surplus of A$1.433 billion in January, the Australian Bureau of Statistics said on Thursday - up 142 percent on the surplus from December. That blew away forecasts for a surplus of A$100 million following the upwardly revised surplus of A$591 million in the previous month (originally A$468 million). Exports climbed A$1.068 billion or 4.0 percent on month to A$29.759 billion.
The dollar was narrowly mixed Wednesday, as traders chalked up disappointing U.S. February jobs data to bad weather.
Markets were closely monitoring the situation in Ukraine, where Russian troops are occupying the strategically important Crimea region.
There was no official saber-rattling today,...
Activity in the U.S. service sector grew at a slower rate in the month of February, according to the results of a survey by the Institute for Supply Management, with some of the respondents attributing the slowdown to the rough winter weather. The ISM said its non-manufacturing index fell to 51.6 in February from 54.0 in January.
With bad winter weather weighing on payrolls, ADP released a report on Wednesday showing that private sector employment in the U.S. rose by less than expected in the month of February. ADP said the private sector added 139,000 jobs in February compared to economist estimates for an increase of about 155,000 jobs.
The U.K. service sector continued to expand for a 14th month in February, supported by another marked increase in new business, data from Markit Economics showed Wednesday.The headline Chartered Institute of Purchasing & Supply/Markit Business Activity Index fell marginally to 58.2 in February from 58.3 in January. That was the lowest reading since last June.